EXCLUSIVE GM to boost spending on electric vehicles by 30%

Source: By David Shepardson, Reuters • Posted: Wednesday, June 16, 2021

WASHINGTON, June 15 (Reuters) – General Motors Co will boost global spending on electric and autonomous vehicles to $35 billion through 2025, a 30% jump over its most recent forecast as it pursues EV leadership, people briefed on the matter told Reuters.

As part of that spending, the No. 1 U.S. automaker will build two additional U.S. battery plants and move ahead some of its EV investments, said the sources, who asked not to be identified. In November, GM upped its spending plans from $20 billion, a figure that was announced in March before the COVID-19 pandemic shut down the auto industry.

The Detroit company declined to comment.

The expected announcement of increased spending by GM comes less than a month after rival Ford Motor Co (F.N) upped its EV spending by more than a third to over $30 billion by 2030.

The combined $65 billion in commitments by the largest U.S. automakers, as well as increased spending by EV leader Tesla Inc (TSLA.O) and startups including Lucid and Rivian reflect the EV arms race that has left some automakers like Lordstown Motors Corp (RIDE.O) scrambling to raise more funds.

In addition, GM Chief Executive Mary Barra is scheduled to meet on Wednesday with U.S. House Speaker Nancy Pelosi and other key Democrats to discuss EVs and vehicle emissions, the sources said.

Barra will also meet U.S. Representative Richard Neal, head of the tax policy Ways and Means Committee, Frank Pallone, who chairs the Energy and Commerce Committee, and two key Michigan Democrats: Representatives Dan Kildee and Debbie Dingell, the sources said.

Reporting by David Shepardson in Washington Editing by Matthew Lewis

 

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